Strategies To Build Long-Term Partnership

 

Business partnerships take on a variety of forms. They may be a long term formal legal commitment or a simple short term venture to test a market concept. The same principles apply in all cases.

Below, are some of  the strategies for a partnership that will start and stay stronger.

1.  Start by creating a shared Vision & Mission
As in any business, it's critical for the partners to define the Vision and Mission of the venture as the very first step. If all brains aren't going in the same direction in the same way, problems are bound to arise. The motives for each partner can be different. The overall objectives and methods, however, need to be the same.

2. Sure each partner's needs and expectations are addressed

Each person in the partnership has his own reasons for being in the partnership. Sometimes people seek a partner for capital, sometimes for expertise, sometimes for connections. These are not always expressed, yet they remain as an underlying expectation. If the expectation isn't met, the relationship can become strained.

Because each person's expertise, motivation and personality are different, it's important to have this discussion before anything is committed contractually.

Because individual needs and expectations may change over time, a clear dissolution or modification plan needs to be in writing also.

3. Consider your partner a part of your team.

Clear and well-defined roles ensure there will be no overlap in offerings that could generate competition between you and your partner. Such conflicts are a significant reason why up to 80 percent of business partnerships eventually fail. It may temporarily delay the partnership, but you'll both flourish if you take time to thoroughly integrate each other into your teams.

 

4. Make honesty and transparency your watchwords.

Establishing a successful partnership and ensuring it has the ability to grow are essential, but they don't guarantee that you will succeed. Long-term success also requires honesty and transparency from both partners. That means maintaining open and frequent communication as well as personal interaction as often as possible.

Make your strengths and shortcomings known upfront and insist on the same level of honesty from your partner. Both companies have to be transparent about what they lack and what they offer before deciding whether the partnership is a good idea. You also have to remain transparent for both sides to capitalize on every opportunity and learn from every failure. Honesty is the best policy when building any relationship. You'll get more out of your business partnership if you make it a priority.

Partnering with the right company may be the next step in your own company's evolution. Your partnership's future will depend on how you approach, build, and maintain it.

 

5.  Identify and utilize the strengths of each partner

Because partners join forces for a variety of reasons and expectations, sometimes the strengths of each individual may be overlooked. The most obvious strengths will probably be recognized; however, underlying strengths, when brought out can often make a big difference in long term motivation, commitment and success.

6. Support the partnership's limitations

In an effort to save money, little things often pile up in areas where partners have neither expertise nor interest. Over time, these can literally sink your business. Limitations can be in any area: strategy, product/service development, marketing and sales, personnel and operations management, financial management and administrative. Wherever they are it's important to identify them as early as possible and have a plan to manage them so they don't get out of hand.

7.  Set company and individual goals

The ideal way for partners to approach goals is to start with goals for the company, then each create goals for themselves. Individual goals should support the company goals. Goals should measure and support expectations. Writing these is especially important for partners.

8.  Handle disagreements, disappointments and frustrations early.

As in any type of partnership, disagreements will happen. Handling partnership disagreements effectively is the key to keeping the relationship on an even keel and the partnership in good order. Don't let bad feelings build and fester over time. Make it a rule that each can approach the other when something needs to be addressed.